# quiz2EngineeringEcon

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1. Simple Interest
Formula
2. I
= (P) (N)(i)
3. Simple Interest
Definition
4. Interest is
• linearly proportional to the principal, interest rate & number of
• interest periods
5. (P/A)
6. Principal
Annualized
7. (P/F)
8. Principal
Future
9. (A/F)
10. Annual Future
11. (A/P)
12. Annual Present
13. Find F given P
14. F=P(F/P, i%, N)
15. Find P given F
16. P=F(P/F, i%, N)
17. Find i given P, F,
N
18. I = N sqrt F/P-1
19. Present Worth
20. Equivalent worth of
all cash flows relative to the time called "present"
21. Future Worth (FW)
22. Equivalent worth of
• all cash inflows and outflows at the end of the planning horizon at an
• interest rate that is generally the MARR
23. Annual Worth (AW)
24. An equal annual
• series of dollar amounts for a stated study period, that is equivalent to the
• cash inflows and outflows at an interest rate that is generally MARR
25. Internal Rate of
Return Method (IRR)
26. Solves for the
• interest rate that equates the equivalent worth of an alternative's cash
• inflows to the equivalent worth of cash outflows.
27. Single Payment
Present Worth
28. P = F(P/F, i%, N)
Something will be worth F in the future, what should you pay for it now?
29. MARR
30. Minimum Attractive
Rate of Return
31. Critical Path
Method
32. A family of
analysis techniques aimed at scheduling activites on a project
33. Capital
34. Money or property
35. Interest &
profits
36. Pay providers of
capital
37. Economic
Equivalence
38. Allows us to
compare alternatives on a common basis
39. Single payment
uniform series (F/A)
40. F = A(F/A, i%, N)
41. External Rate of
Return (ERR)
42. Takes into account
• the interest rate external to a project at which net cash flows generated (or
• borrowed) by the project over its life can be reinvested (or borrowed)

## Card Set Information

 Author: Anonymous ID: 87635 Filename: quiz2EngineeringEcon Updated: 2011-05-25 04:03:22 Tags: Engineering Economy Folders: Description: Engineering Economy terms for quiz2 Show Answers:

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